In-Depth Analysis: Halliburton Company (NYSE:HAL)

Today, I am going to be analyzing the stock of Halliburton Company (NYSE:HAL). On January 27th, a new red monthly Trade Triangle appeared, the first in 12 months for the stock. This indicates a significant technical development and changes the outlook and direction of Halliburton.

Today's in-depth analysis is not to say the stock is going to collapse and go out of business, but rather I am noting a confluence of certain technical indicators that do not paint a positive picture for this stock.

There is an old adage in trading and it says "they slide faster than they glide." Translated that means stocks go down a lot faster than they go up.

What Does This Company Do?

Halliburton Company provides a range of services and products for the exploration, development, and production of oil and natural gas to oil and gas companies worldwide.

Chart Legend & Technical Picture (Black Numbers)

1. Classic long-term trend line
2. Neckline of a Head and Shoulders Top
3. Head and Shoulders Top
4. Break below the 14-month trend line and Head and Shoulders Neckline
5. Fibonacci retracement levels
6. RSI divergence with price action below 50.

All of the Trade Triangles are red and negative.

To summarize, I expect the current downtrend in Halliburton Company (NYSE:HAL) to continue unless I see otherwise with the Trade Triangle technology.

If I am correct in my analysis, I could potentially see Halliburton move down to the following Fibonacci retracement levels:
38.2% @ $46.13
50% @ $43.00
61.8% @ $39.86

The 61.8% Fibonacci level of $39.86 nicely matches the Head and Shoulders target zone of $40.00. These two measurements confirm one another and make a strong case for this stock trading down to the $40 level in the next few months.